Lehman refund

Some 5,000 Frankfurter Sparkasse customers will receive a partial refund on the money they lost through investing in the ill-fated US investment bank Lehman, the German bank announced Thursday.

The offer will run until December 22, and the customers in question will receive letters in the coming days.

Some 44 million euros ($66 million) will be made available for the reimbursement, which is the largest return of Lehman money in Germany.

The Frankfurter Sparkasse already began to cover the damages of individual Lehman investors in March, concentrating on those worst affected. Lehman shares became practically worthless last September when the bank collapsed in the middle of the global financial crisis. Investors around the world lost billions of dollars.

Many investors have attempted to sue financial institutions that sold them Lehman products in the past few years, complaining that they had not been sufficiently informed of the risk of a total loss of their capital.

The Hannover Sparkasse ran a similar refund offer to its customers recently, offering up to a 75 percent reimbursement, depending on the date they made their investments. 95 percent of affected customers had taken up the offer, the bank reported recently.

The consumer advice service in the state of Hesse welcomed the announcement, but warned against taking up the offer too hastily. It is possible that investors may be entitled to more than the 50 percent being offered, the consumer advice service said, and advised a consultation with them or with a lawyer before acting.

bk/AFP/dpa

Editor: Kyle James